The loan that Notebookcheck reported on in mid-2023 is only just taking its final shape now. It comes as part of a broader push by the Biden administration to stimulate EV production ahead of the upcoming presidential transition.
- The loan is aimed at developing more than 120 gigawatt hours of U.S. battery production annually.
- BlueOval SK has invested over $11 billion already in building the new facilities, with production expected to commence in Kentucky by 2025 and in Tennessee by late 2025.
- The approval process for the loan apparently involved a lot of scrutiny.
Jigar Shah, head of the DOE Loan Programs office, highlighted the importance of this initiative, emphasizing competitive challenges posed by China in the global manufacturing landscape and underscoring the importance of enhancing domestic production capabilities:
This program is essential to getting people to choose the United States of America
The BlueOval SK joint venture's current goals include building three facilities in mainland America, each spanning 4 million square feet.
In a related effort to boost EV production, the DOE is also planning to provide up to $7.54 billion in cheap funding to Stellantis and Samsung SDI to enable construction of two lithium-ion battery plants in Indiana. This initiative, alongside previous funding agreements including a $2.5 billion loan to General Motors and LG Energy Solution for battery facilities in multiple states.
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